It has been looking for a strategic partner as the recession has hit traffic
at the airports, which rely heavily on charter flights and low-cost airlines.

VAS, which is jointly owned by Vancouver Airport Authority and Citi Infrastructure
Investors, operates 16 airports around the world.

In 2009 its network of airports handled 28.5m passengers and reported revenue
of more than C$530m (US$514m, £350m). Craig Richmond, who was running Nassau airport
in the Bahamas for VAS, will replace Mark Whitworth as chief executive of Peel
Airports.

George Casey, president and chief executive of VAS, said it had "a strong track
record of investing in and providing value-added management services for airports
around the world".

John Whittaker, Peel chairman, said: "The retention of a significant investment
in the joint venture, together with our associated airport-related property, is
in line with our strategy of creating long-term partnerships to unlock value from
the relationship between our diverse infrastructure, transport and real estate
assets."

Peel has invested heavily in its airports as Liverpool has expanded its capacity
and increased annual passenger numbers to 5m. The latest accounts, for the year to March 2009, showed a 9% fall in turnover
from £53.4m to £48m, with pre-tax losses widening from £4.6m to £13m. Net debt
grew to £105.5m.